China has inaugurated the Pinglu Canal in the Guangxi Zhuang Autonomous Region, a strategic waterway aimed at enhancing trade connections between southwest China and Southeast Asia. The canal, spanning 134.2 kilometers and costing approximately 72.7 billion yuan ($10.75 billion), links Hengzhou with the Beibu Gulf as part of the New International Land-Sea Trade Corridor.
This development provides a more direct route for vessels up to 5,000 tonnes, reducing the traditional inland waterway distance to the sea by over 560 kilometers through Guangdong ports. The canal is expected to cut logistics costs by 18% to 30%, potentially saving over 5 billion yuan annually in transportation expenses, making it a significant boon for southwest China where businesses have faced higher shipping costs.
The Pinglu Canal project features three navigation hubs with twin-line ship locks to handle a 65-meter water level difference. In an effort to promote sustainability, the canal includes water-recycling systems projected to conserve more than 1 billion cubic meters of water annually. Environmental considerations also saw over 98% of excavated materials reused and the integration of a fish passage and wildlife crossing.
Economic ties between China and the Association of Southeast Asian Nations (ASEAN) are poised to strengthen with this new route. In 2025, trade between China and ASEAN surpassed $1 trillion, and in the first seven months of 2026 alone, it reached $744.41 billion. The canal is anticipated to not only facilitate the movement of coal, grain, minerals, new-energy materials, and automobile parts but also to attract investment and boost supply-chain integration along its length.